Understanding Car Insurance Coverage in the UAE

Understanding Car Insurance Coverage in the UAE

At some point, most of us have been victims of the unscrupulous stone that caused a crack in our vehicle’s windshield. Depending on the type of insurance coverage you had, this may or may not have been covered. Finding the best car insurance in the UAE can be tricky with all the different options and benefits out there.

There are two general types of car insurance that you can purchase; comprehensive, which covers the driver and the other cars in case of an accident, or third party coverage, which only covers the other car and passengers in case of an accident. With third party coverage, the policyholder must pay for all damage to their own vehicle if they cause an accident. Of course, if you are looking for cheap car insurance in the UAE, it typically means purchasing third party cover only.

Comprehensive policies, depending on the added benefits that are purchased, can also cover a cracked windshield, car rental during damage repair, 24/7 roadside assistance and other perks that the insurance company may offer. Most policies for car insurance in the UAE require a deductible to be paid with the insurance company covering the remaining amount. The deductible can range anywhere from AED 500 AED to AED 2,000; of course, the cheapest car insurance usually comes with the highest deductible.

Many people opt for third party insurance coverage because it is the cheapest option and they rely on their excellent driving skills to keep them out of trouble. In high traffic areas, it is a safer choice to choose comprehensive coverage, because with more time spent on the road, and with more cars on the road daily, the likelihood of an accident or unforeseen circumstance occurring are higher.

If a car loan is taken, the bank will require that comprehensive insurance be purchased for the duration of the loan term. Since the bank views the vehicle as security for the car loan should the borrower default; it wants to ensure that the car is fully protected. Dealerships will typically offer promotions that include free car insurance with the purchase of a new car, especially during Ramadan. However, it is always important to review the benefits in the policy to ensure you have the best car insurance for your needs.

At bayzat, we provide extremely competitive rates and only deal with insurers that meet our high standards for quality and customer experience. All you need to do is fill out our application, and an insurance expert will get in touch with you to guide you through the process. 

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